CONTRACTOR DEBARMENT

Houston Code of Ordinances ch. 15, art. VII

in effect

Houston Code of Ordinances § 15-100 Scope.

Sec. 15-100. - Scope. This article provides for debarment of contractors as a remedy available to the city separate and apart from sanctions that may be imposed under article V of this chapter. (Ord. No. 2015-668, § 5(Exh. C), 7-8-2015)

Houston Code of Ordinances § 15-101 Definitions.

Sec. 15-101. - Definitions. As used in this article, the following terms have the meanings below, unless otherwise indicated: Chief procurement officer or CPO means the chief procurement officer for the city. Collusion means the cooperation of two or more parties to act together secretly to achieve a fraudulent or unlawful act, such as secretly agreeing to unlawful practices regarding competitive bidding; collusion may result in a violation of antitrust laws. Commission means the contract compliance commission. Contract means any contract or subcontract entered into by the city. Contractor means any person who contracts with or otherwise provides goods or services to the city; the term includes subcontractors who provide any goods, materials, or services used in the performance of contracts. Day means a calendar day. Debarment means action taken by the city to exclude a person from acting as a contractor for a specified period. Debarment regulations means written rules and procedures established by the chief procurement officer for the purposes set forth in this article. Substantial evidence means more than a scintilla but less than preponderance of evidence and consists of such relevant evidence as a reasonable person would accept as adequate to support a conclusion. Theft of services has the meaning provided in section 31.04 of the Texas Penal Code. Wrongful conduct means any of the types of conduct or offenses listed in section 15-103(1)—(4) of this Code. (Ord. No. 2015-668, § 5(Exh. C), 7-8-2015)

Houston Code of Ordinances § 15-102 Debarred person ineligible.

Sec. 15-102. - Debarred person ineligible. (a) No debarred contractor shall be eligible for award of any contract. No debarred contractor is a responsible bidder for any contract. (b) No debarred contractor is eligible to serve as a subcontractor or as a goods or materials supplier for any contract. Unless otherwise determined by the CPO, this provision shall not be construed to preclude completion of existing subcontracts as provided in section 15-110(b) of this Code. (Ord. No. 2015-668, § 5(Exh. C), 7-8-2015)

Houston Code of Ordinances § 15-103 Grounds for debarment.

Sec. 15-103. - Grounds for debarment. A person found to have committed any of the following acts in the four-year period preceding referral to the chief procurement officer may be debarred: (1) Any significant and material breach of any contract, including without limitation, without good cause: a. Failing to comply with state, federal or local laws or regulations applicable to the performance of a contract; b. Failing to comply with state, federal or local laws or regulations or applicable city policies and procedures concerning payment of a contractor or subcontractor; c. Failing to pay its employees as required by law or otherwise engaging in theft of services; or d. Engaging in collusion. (2) Knowingly using a debarred contractor as a subcontractor. (3) Conviction or civil adjudication of the contractor or the contractor's officers or owners of a criminal offense or civil misconduct in connection with the contractor's business that evidences a lack of business integrity or business honesty, including without limitation, embezzlement, theft, theft of services, forgery, bribery, fraud, falsification or destruction of records, making false statements, or receiving stolen property, or violations of laws relating to the obtaining of or performing of public contracts. (4) Any other conduct that evidences the inability of the contractor to responsibly complete contracts on behalf of the city. The conduct giving rise to the debarment may be based upon actions taken in connection with work undertaken for the city, other public entities, or private entities. The conduct may also result in a referral to law enforcement. (Ord. No. 2015-668, § 5(Exh. C), 7-8-2015)

Houston Code of Ordinances § 15-104 Wrongful conduct investigation; debarment determination.

Sec. 15-104. - Wrongful conduct investigation; debarment determination. (a) Any department director or elected city official may refer a contractor to the chief procurement officer for purposes of determining whether debarment is appropriate. The referral shall be signed and in writing and shall set forth the basis of the complaint asserted. (b) Following receipt of the referral, the chief procurement officer, in his sole but reasonable discretion, shall assign an impartial individual, who may be a city employee, to investigate whether there is reasonable cause to believe wrongful conduct has occurred. In consultation with the city attorney, the CPO shall promulgate regulations governing the debarment process, including but not limited to the assignment of an impartial individual to conduct investigations on the CPO's behalf. (c) Upon receipt of the investigator's findings, the CPO shall: (1) Affirm or deny the finding; (2) Return the matter for further investigation; or (3) Refer the matter to the commission for a hearing in accordance with the standard of review and timeframes provided in section 15-105 of this Code. (d) Upon the CPO's affirmation of a finding of wrongful conduct, the CPO shall provide to the contractor a written notice of debarment and offer the opportunity for a hearing, pursuant to the debarment regulations established under this section, and section 15-105 of this Code. A contractor's failure to make a timely request for a hearing renders the CPO's decision final. (Ord. No. 2015-668, § 5(Exh. C), 7-8-2015)

Houston Code of Ordinances § 15-105 Debarment by the commission.

Sec. 15-105. - Debarment by the commission. (a) A contractor who has received notice of debarment from the chief procurement officer may request a review by the commission, if, not later than 14 days after the date of the debarment decision, the contractor provides a written notice of appeal to the commission. The notice of appeal must contain specific exceptions to the CPO's decision to issue a notice of debarment. (b) The commission shall conduct a hearing within 30 days after the date it receives a valid notice of appeal from a contractor or referral for a hearing from the CPO. (c) The commission shall issue a decision affirming or reversing the decision of the CPO or, in instances when the CPO has referred a matter to the commission for a hearing, issue a decision determining whether there is substantial evidence that the contractor has engaged in wrong conduct. The commission shall make written findings explaining the basis for its decision. All decisions and written findings of the commission shall be based upon whether there is substantial evidence that the contractor engaged in wrongful conduct. (d) If the commission affirms the decision of the CPO or determines on its own that the contractor engaged in wrongful conduct, the contractor may request review by city council if, not later than 14 days after the date of the decision of the commission, the contractor submits a written request for review by city council to the city secretary. A contractor's failure to make a timely request for a hearing renders the commission's decision final. (Ord. No. 2015-668, § 5(Exh. C), 7-8-2015)

Houston Code of Ordinances § 15-106 Review by city council.

Sec. 15-106. - Review by city council. (a) Upon receipt of a request for a review of the commission's debarment decision, city council shall review the record of the commission, including the record created at the hearing, the record of the chief procurement officer's hearing, if any, and any written exceptions to the CPO's decision filed with the commission. City council shall consider the matter in the manner set forth by Rule 12, section 2-2 of this Code. City council may: (1) Affirm debarment for the recommended period of time; (2) Affirm the debarment order with modifications as to the period of debarment; (3) Return the matter to the CPO for development of further factual evidence if city council finds the record to be incomplete; or (4) Overturn the debarment order and take no action against the contractor. (b) The decision of city council shall be final and exhausts all administrative remedies. (c) The city secretary shall notify the contractor in writing of city council's decision. The CPO shall maintain the record of all debarred contractors and shall publish the list on the city's website. (Ord. No. 2015-668, § 5(Exh. C), 7-8-2015)

Houston Code of Ordinances § 15-107 Period of debarment; reinstatement.

Sec. 15-107. - Period of debarment; reinstatement. (a) The period for debarment shall be commensurate with the seriousness of the cause or causes therefor, but in no case shall the period exceed five years. (b) A debarred contractor may petition for reinstatement after one-half the period of debarment has passed by making written request to the CPO pursuant to the debarment regulations promulgated by the CPO. (Ord. No. 2015-668, § 5(Exh. C), 7-8-2015)

Houston Code of Ordinances § 15-108 Effect of debarment order.

Sec. 15-108. - Effect of debarment order. (a) Debarment of a contractor constitutes a finding under section 252.043(a) of the Texas Local Government Code that the contractor is not responsible and operates as the city's rejection of any bid submitted by the contractor during the debarment period. The CPO or designee shall return a debarred person's bid and bid bond immediately after bids are opened without requirement of any further action. (b) When making a debarment decision, the CPO shall take into consideration whether the debarment affects any contract or subcontract existing at the time of the debarment decision. (Ord. No. 2015-668, § 5(Exh. C), 7-8-2015)

Houston Code of Ordinances § 15-109 Application of remedies.

Sec. 15-109. - Application of remedies. The provisions of this article are in addition to any other rights or remedies available to the city in connection with the award of any contracts to disqualify bidders who are not responsible, regardless of whether they have been so declared hereunder. This right extends but is not limited to declining to award contracts to bidders who have the same or substantially the same officers, owners, or managers as debarred contractors. (Ord. No. 2015-668, § 5(Exh. C), 7-8-2015)

Houston Code of Ordinances § 15-110 Effect on other ordinances.

Sec. 15-110. - Effect on other ordinances. A debarred contractor is not eligible for certification under articles IV, V, or VI of this chapter. Debarment shall have the effect of terminating any certification thereunder. (Ord. No. 2015-668, § 5(Exh. C), 7-8-2015)

Source: City of Houston, Code of Ordinances and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/tx/houston/codes/code_of_ordinances?nodeId=COOR_CH15CO_ARTVIICODEFetched: 10/26/2026